High labor costs eat into JD Wetherspoon’s profit

British pubs group JD Wetherspoon Plc posted an 18.9 percent fall in first-half pretax profit on Friday, hit by high labor costs. The company, like most restaurant chains in the country, has been battling high staff costs, property prices and power bills as well as a move away from pub drinking by younger Britons. The FTSE 250, which relies heavily on alcohol sales at its restaurants, said on Friday labour costs increased by about 33 million pounds, accounting for the biggest chunk of overall co


British pubs group JD Wetherspoon Plc posted an 18.9 percent fall in first-half pretax profit on Friday, hit by high labor costs. The company, like most restaurant chains in the country, has been battling high staff costs, property prices and power bills as well as a move away from pub drinking by younger Britons. The FTSE 250, which relies heavily on alcohol sales at its restaurants, said on Friday labour costs increased by about 33 million pounds, accounting for the biggest chunk of overall co
High labor costs eat into JD Wetherspoon’s profit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: reuters with cnbccom, robert alexander, getty images
Keywords: news, cnbc, companies, younger, profit, pubs, rose, sales, increased, labor, jd, eat, company, wetherspoons, likeforlike, costs, weeks, high


High labor costs eat into JD Wetherspoon's profit

British pubs group JD Wetherspoon Plc posted an 18.9 percent fall in first-half pretax profit on Friday, hit by high labor costs.

The company, like most restaurant chains in the country, has been battling high staff costs, property prices and power bills as well as a move away from pub drinking by younger Britons.

The FTSE 250, which relies heavily on alcohol sales at its restaurants, said on Friday labour costs increased by about 33 million pounds, accounting for the biggest chunk of overall costs.

It expects results for the current financial year to remain unchanged.

The company said like-for-like sales rose 9.6 percent in the six weeks to March 10, helped by good weather this year, while total sales increased 10.9 percent.

The owner and operator of more than 900 pubs in UK and Ireland said like-for-like sales rose 6.3 percent in the 26 weeks to January 27.


Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: reuters with cnbccom, robert alexander, getty images
Keywords: news, cnbc, companies, younger, profit, pubs, rose, sales, increased, labor, jd, eat, company, wetherspoons, likeforlike, costs, weeks, high


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Generali beats 2018 targets despite ‘challenging’ Italian market, raises dividend

“But when people do not invest because the economy is not growing, the life insurance business and asset management is growing.” Donnet also claimed that Generali’s 59 billion euros in Italian BTPs was not a concern to investors. Generali has reserved up to 4 billion euros for acquisitions and growth as it looks to asset management and high-margin business in Latin America and Asia. Clarification: This story has been updated to reflect that Donnet claimed that Generali’s 59 billion euros in Ital


“But when people do not invest because the economy is not growing, the life insurance business and asset management is growing.” Donnet also claimed that Generali’s 59 billion euros in Italian BTPs was not a concern to investors. Generali has reserved up to 4 billion euros for acquisitions and growth as it looks to asset management and high-margin business in Latin America and Asia. Clarification: This story has been updated to reflect that Donnet claimed that Generali’s 59 billion euros in Ital
Generali beats 2018 targets despite ‘challenging’ Italian market, raises dividend Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: reuters with cnbccom, pier marco tacca, getty images
Keywords: news, cnbc, companies, management, euros, despite, 2018, generalis, growing, targets, dividend, billion, market, business, beats, reflect, raises, generali, challenging, btps, economy, italian


Generali beats 2018 targets despite 'challenging' Italian market, raises dividend

Europe’s third-largest insurer said it would pay a dividend of 0.90 euros per share, up from the previous year’s 0.85 euros.

When it came to a potential European slowdown in 2019, however, Donnet said Generali was not concerned. He explained that people sought out the solutions Generali provided whether the economy was booming or lagging.

“Our business is very resilient, because when people do invest and the economy is growing, the property and casualty business is growing,” he said. “But when people do not invest because the economy is not growing, the life insurance business and asset management is growing.”

However he noted heavy competition in its domestic market, especially with motor insurance, adding that it was “challenging.”

“In Italy and France, by the way, we had to face very important claims … which obviously had a significant impact on the operating result,” he added.

Donnet also claimed that Generali’s 59 billion euros in Italian BTPs was not a concern to investors.

“(Investors) do not struggle any more on this — we have demonstrated that we have a strong capital position. We have further increased our solvency ratio by 9 percentage points, so our exposure to BTPs is no longer an issue,” he told CNBC.

Generali has reserved up to 4 billion euros for acquisitions and growth as it looks to asset management and high-margin business in Latin America and Asia.

Clarification: This story has been updated to reflect that Donnet claimed that Generali’s 59 billion euros in Italian BTPs was not a concern to investors. The headline has also been changed on this story to more accurately reflect Generali’s earnings release.


Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: reuters with cnbccom, pier marco tacca, getty images
Keywords: news, cnbc, companies, management, euros, despite, 2018, generalis, growing, targets, dividend, billion, market, business, beats, reflect, raises, generali, challenging, btps, economy, italian


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Legal & General 2018 operating profit rises 10%

UK and US should drop quarterly reports, Legal & General CEO says 4 Hours Ago | 06:38Britain’s third-largest insurer Legal & General posted a 10 percent rise in operating profit to 1.9 billion pounds ($2.5 billion) in 2018, helped by record sales of annuities, it said on Wednesday. The bulk annuity market is expected to reach record levels this year, with some analysts estimating sales of 30 billion pounds. Nigel Wilson, chief executive of Legal & General, told CNBC Wednesday that reaching that


UK and US should drop quarterly reports, Legal & General CEO says 4 Hours Ago | 06:38Britain’s third-largest insurer Legal & General posted a 10 percent rise in operating profit to 1.9 billion pounds ($2.5 billion) in 2018, helped by record sales of annuities, it said on Wednesday. The bulk annuity market is expected to reach record levels this year, with some analysts estimating sales of 30 billion pounds. Nigel Wilson, chief executive of Legal & General, told CNBC Wednesday that reaching that
Legal & General 2018 operating profit rises 10% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, billion, pounds, consistency, operating, 2018, profit, management, rises, general, bulk, legal, market, told


Legal & General 2018 operating profit rises 10%

UK and US should drop quarterly reports, Legal & General CEO says 4 Hours Ago | 06:38

Britain’s third-largest insurer Legal & General posted a 10 percent rise in operating profit to 1.9 billion pounds ($2.5 billion) in 2018, helped by record sales of annuities, it said on Wednesday.

L&G sold 10 billion pounds of annuities, most of them through the bulk annuity market, in which companies offload the risk to insurers of their defined benefit, or final salary, pension schemes.

The bulk annuity market is expected to reach record levels this year, with some analysts estimating sales of 30 billion pounds.

Nigel Wilson, chief executive of Legal & General, told CNBC Wednesday that reaching that number was a “wonderful achievement.”

“One of the key things is that became the U.K.’s first trillion pound asset management business which is a wonderful achievement by my colleagues,” he told CNBC’s “Squawk Box Europe.”

“And it’s about consistency, consistency of strategy, consistency of delivery. Pretty much for the last 10 years we’ve been averaging 10 percent growth in operating profit and earnings per share and a 22.7 percent return on equity is hardly shabby in these very difficult low interest rate environments,” he said, “I’m really pleased overall with the results.”

Chief financial officer Jeff Davies told a media call that the firm has “a good outlook for 2019 across annuities and asset management.”

The firm was actively quoting on around 20 billion pounds in bulk annuity deals, he added.

Legal & General Investment Management, one of the biggest investors in the U.K. stock market, saw a three percent rise in assets under management to 1 trillion pounds.

The profit numbers, in line with company-supplied consensus forecasts, exclude the release of longevity reserves made possible by a slowdown in life expectancy improvements, the life insurer said in a statement.

The company said it would pay a total dividend of 16.42 pence, up seven percent and in line with forecasts.


Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, billion, pounds, consistency, operating, 2018, profit, management, rises, general, bulk, legal, market, told


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Iran’s Zarif accuses Israel, US of seeking war

Zarif said the U.S. had an “unhealthy” and “pathological obsession” with Iran and accused Pence of trying to bully his allies. “Look at the map, the U.S. military has traveled 10,000 kilometers to dot all our borders with its bases. But diplomats say it is unlikely to allow the big transactions that Tehran says it needs to keep a nuclear deal afloat. “INSTEX falls short of commitments by the E3 (France, Germany, Britain) to save the nuclear deal,” Zarif said. But still, the defense contractors s


Zarif said the U.S. had an “unhealthy” and “pathological obsession” with Iran and accused Pence of trying to bully his allies. “Look at the map, the U.S. military has traveled 10,000 kilometers to dot all our borders with its bases. But diplomats say it is unlikely to allow the big transactions that Tehran says it needs to keep a nuclear deal afloat. “INSTEX falls short of commitments by the E3 (France, Germany, Britain) to save the nuclear deal,” Zarif said. But still, the defense contractors s
Iran’s Zarif accuses Israel, US of seeking war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-17  Authors: reuters with cnbccom, getty images
Keywords: news, cnbc, companies, trade, israel, zarif, nuclear, tehran, world, deal, sanctions, trying, accuses, accused, iran, seeking, war, irans


Iran's Zarif accuses Israel, US of seeking war

Vice-President Pence on Friday accused Iran of Nazi-like anti-Semitism, maintaining his harsh rhetoric against Tehran just a day he attacked European powers for trying to undermine U.S. sanctions on the Islamic Republic.

Zarif said the U.S. had an “unhealthy” and “pathological obsession” with Iran and accused Pence of trying to bully his allies.

“All in the name of containing Iran, the U.S. claims, and some blindly parrot, that it is Iran that is interfering in the region, but has it been asked whose region?” Zarif said.

“Look at the map, the U.S. military has traveled 10,000 kilometers to dot all our borders with its bases. There is a joke that it is Iran that put itself in the middle of U.S. bases.”

Zarif, who said Iran was committed to the 2015 nuclear deal with world powers for now, also accused France, Britain and Germany of not doing enough to ensure Tehran received the economic benefits of that accord.

These three countries this month set up the Instrument In Support Of Trade Exchanges (INSTEX), a new channel for non-dollar trade with Iran to avoid U.S. sanctions. But diplomats say it is unlikely to allow the big transactions that Tehran says it needs to keep a nuclear deal afloat.

Washington’s major European allies opposed last year’s decision by U.S. President Donald Trump to abandon the deal, which also includes China and Russia, under which international sanctions on Iran were lifted in return for Tehran accepting curbs on its nuclear program.

“INSTEX falls short of commitments by the E3 (France, Germany, Britain) to save the nuclear deal,” Zarif said. “Europe needs to be willing to get wet if it wants to swim against the dangerous tide of U.S. unilateralism.”

Also speaking at the Munich Security Conference, Saudi Arabian Prince Turki Al-Faisal suggested the foreign minister’s words were hypocritical when looking at what Iran is doing in the region.

“They have to reform their conduct before people can accept them as positive players in the world,” he told CNBC’s Hadley Gamble.

Meanwhile, Ian Bremmer, the president and founder of Eurasia Group, believes there is an arms race going on in the region.

“I mean the Saudis of course are spending the most on their defense but the UAE (United Arab Emirates) is ramping up as well, the Iranians are ramping up. It’s going to be more challenging (for Iran) with the recession they are having this year. But still, the defense contractors should be happy in this environment, that’s true all over the world,” he told CNBC in Munich.


Company: cnbc, Activity: cnbc, Date: 2019-02-17  Authors: reuters with cnbccom, getty images
Keywords: news, cnbc, companies, trade, israel, zarif, nuclear, tehran, world, deal, sanctions, trying, accuses, accused, iran, seeking, war, irans


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Nestle expects sales to grow this year

Nestle said it expected its organic sales to rise this year after an improving performance in China and North America helped growth accelerate in 2018 after six years of slowdowns. “We’ve seen slowing GDP (in China), but that has not translated into slowing consumer interest,” he said. Schneider added that Nestle was focusing on a review of its structural costs, which was being done in a way that would protect organic growth. He also told CNBC that the company expected a pricing increase of more


Nestle said it expected its organic sales to rise this year after an improving performance in China and North America helped growth accelerate in 2018 after six years of slowdowns. “We’ve seen slowing GDP (in China), but that has not translated into slowing consumer interest,” he said. Schneider added that Nestle was focusing on a review of its structural costs, which was being done in a way that would protect organic growth. He also told CNBC that the company expected a pricing increase of more
Nestle expects sales to grow this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: reuters with cnbccom, getty images
Keywords: news, cnbc, companies, sales, schneider, slowing, growth, grow, expects, nestle, seen, think, organic, confectionery, performance


Nestle expects sales to grow this year

Nestle said it expected its organic sales to rise this year after an improving performance in China and North America helped growth accelerate in 2018 after six years of slowdowns.

Demand for packaged foods has suffered from a trend towards healthier eating, and Nestle Chief Executive Mark Schneider is trying to bring the world’s biggest food group back up to speed by improving efficiency and focusing on growth categories.

Organic sales grew 3.0 percent in the full year, accelerating to 3.7 percent in the final quarter, and net profit jumped 42 percent to 10.1 billion Swiss francs ($10.02 billion) benefiting from one-off items, the maker of Kitkat chocolate bars and Nespresso portioned coffee said in a statement on Thursday.

Speaking to CNBC’s Julianna Tatelbaum on Thursday, Schneider said Nestle’s growth was driven by its nutrition business as well as strong performance in the U.S. and China.

“We’ve seen slowing GDP (in China), but that has not translated into slowing consumer interest,” he said. “We’ve seen very solid progress coming out of 2017 and 2018 so I think there’s generally a lot of confidence in the market that we’ll make that (2020) target.”

Schneider added that Nestle was focusing on a review of its structural costs, which was being done in a way that would protect organic growth. He also told CNBC that the company expected a pricing increase of more than 0.5 percent in 2019.

“What we’re seeing – especially after our retreat after the U.S. – is that we have put a whole lot of effort into rejuvenating our product program and that’s clearly paying off. And so no matter what the overall market growth numbers are, I think we are back to gaining share in key markets and across some key confectionery subcategories, and that gives me good hope for 2019 and beyond.”

“We have no plans for further portfolio adjustments in confectionery, we want to win in confectionery,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: reuters with cnbccom, getty images
Keywords: news, cnbc, companies, sales, schneider, slowing, growth, grow, expects, nestle, seen, think, organic, confectionery, performance


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

ABN Amro fourth-quarter net profit drops 42 percent, missing estimates

Dutch bank ABN Amro on Wednesday missed analysts’ expectations with a 42 percent fall in fourth-quarter net profit as loan impairments increased. Net profit was 316 million euros ($358.2 million), compared with 542 million euros profit a year earlier, and an average expectations of 446 million euros in a Reuters poll of analysts. ABN Amro last year said it would limit trade and commodity finance operations in the offshore energy, diamond and shipping sectors, to improve profitability. Net profit


Dutch bank ABN Amro on Wednesday missed analysts’ expectations with a 42 percent fall in fourth-quarter net profit as loan impairments increased. Net profit was 316 million euros ($358.2 million), compared with 542 million euros profit a year earlier, and an average expectations of 446 million euros in a Reuters poll of analysts. ABN Amro last year said it would limit trade and commodity finance operations in the offshore energy, diamond and shipping sectors, to improve profitability. Net profit
ABN Amro fourth-quarter net profit drops 42 percent, missing estimates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: reuters with cnbccom, jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, fourthquarter, amro, abn, drops, missing, 42, euros, million, shipping, dutch, sectors, estimates, q4, net, oil, bank, profit


ABN Amro fourth-quarter net profit drops 42 percent, missing estimates

Dutch bank ABN Amro on Wednesday missed analysts’ expectations with a 42 percent fall in fourth-quarter net profit as loan impairments increased.

Net profit was 316 million euros ($358.2 million), compared with 542 million euros profit a year earlier, and an average expectations of 446 million euros in a Reuters poll of analysts.

Clifford Abrahams, chief financial officer of ABN Amro told CNBC Wednesday: “Q4 was operationally solid and steady…But we had a couple of specific items in Q4, we had some expenses and elevated impairments.”

“But for the year as a whole, the bank is in good shape and you see we posted an ROE (return on equity) of 11 percent and we are confirming our guidance for 2019,” he added.

Loan impairments soarded to 208 million euros from 34 million a year earlier, as shipping, oil services, jewellery and some other sectors continued to struggle despite a strong recovery in the Dutch economy and rising oil prices.

ABN Amro last year said it would limit trade and commodity finance operations in the offshore energy, diamond and shipping sectors, to improve profitability.

Net profit was also dented by 85 million euros in extra costs for the scrutiny of clients, as the bank stepped up its fight against money laundering and other criminal activities.

This followed a record $900 million fine paid by fellow Dutch bank ING Groep NV in September for failing to spot criminal activities financed through its accounts for years.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: reuters with cnbccom, jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, fourthquarter, amro, abn, drops, missing, 42, euros, million, shipping, dutch, sectors, estimates, q4, net, oil, bank, profit


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Akzo Nobel fourth-quarter earnings beat expectations; sees lower input costs

Dutch paint maker Akzo Nobel on Wednesday posted flat fourth-quarter core earnings of 240 million euros ($272 million), but marginally beat expectations, and said it expected pressure from rising raw material costs to ease in 2019. Analysts polled by Reuters had expected earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three months ended Dec. 31 to be at 235 million euros, compared with 240 million euros in the year-ago period. Sales volume declines in China, which


Dutch paint maker Akzo Nobel on Wednesday posted flat fourth-quarter core earnings of 240 million euros ($272 million), but marginally beat expectations, and said it expected pressure from rising raw material costs to ease in 2019. Analysts polled by Reuters had expected earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three months ended Dec. 31 to be at 235 million euros, compared with 240 million euros in the year-ago period. Sales volume declines in China, which
Akzo Nobel fourth-quarter earnings beat expectations; sees lower input costs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: reuters with cnbccom, jock fistick, bloomberg, getty images
Keywords: news, cnbc, companies, fourthquarter, input, company, china, expected, earnings, million, akzo, euros, expectations, quarter, nobel, vanlancker, fourth, costs, lower, beat, sees, continue, volume


Akzo Nobel fourth-quarter earnings beat expectations; sees lower input costs

Dutch paint maker Akzo Nobel on Wednesday posted flat fourth-quarter core earnings of 240 million euros ($272 million), but marginally beat expectations, and said it expected pressure from rising raw material costs to ease in 2019.

Analysts polled by Reuters had expected earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three months ended Dec. 31 to be at 235 million euros, compared with 240 million euros in the year-ago period.

Sales volume declines in China, which fell 7 percent in the fourth quarter of 2018, are expected to ease, Akzo Bobel said in a statement.

The company maintained current financial goals of a 15 percent return on sales and investment by 2020, Chief Executive Officer Thierry Vanlancker said.

“Demand trends differ per region and segment in an uncertain macro-economic environment,” the company said. “Raw material inflation is expected to continue during the first half of 2019, although at a lower rate than 2018.”

It said it would continue to pass higher prices on to customers, and cut input costs by 200 million euros by 2020.

Akzo Nobel was affected by all macro-economic factors that have captivated investors in 2018, and would continue to be, in 2019, including the U.S.-China trade war, Britain’s plan to leave the European union, and high inflation rates in several developing markets, Vanlancker said.

“We really didn’t get any help from anybody,” Vanlancker said on a call with reporters.

“We belive that for the first 3-4 months of this year, it’s going to be business as usual,” he said, with a focus on cost-cutting.

Akzo warded off an acquisition by U.S. peer PPG in 2017 and sold its chemicals arm, representing a third of its business, for 10.1 billion euros in March 2018 to a group of buyers led by Carlyle Group.

It outlined plans for proceeds to shareholders in October by mix of sharebacks and a capital return.

Speaking to CNBC’s “Squawk Box Europe” on Wednesday, Vanlancker said the sales volume shift in China was a normalization following a surge in demand in the fourth quarter of 2017.

“Our volume in those markets is exactly the same as what we had in the fourth quarter of 2016, so it is actually a normalizing with some extraordinary effect,” he said. “We of course are very vigilant on that, (and) if you look at the rest of our business we see about 1 or 2 percent volume stabilizing and starting to gradually come back.”

He added that the company expected the numbers in China to “really get much more normalized in the coming year.”


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: reuters with cnbccom, jock fistick, bloomberg, getty images
Keywords: news, cnbc, companies, fourthquarter, input, company, china, expected, earnings, million, akzo, euros, expectations, quarter, nobel, vanlancker, fourth, costs, lower, beat, sees, continue, volume


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Skanska fourth-quarter operating profit, 2018 dividend lag expectations

Swedish builder Skanska reported on Friday a smaller rise than expected in fourth-quarter operating profit and proposed a lower dividend than expected. Operating profit at the Nordic region’s biggest builder, and one of the biggest in the United States, was 2.38 billion crowns ($257 million) against a mean forecast in a Reuters poll of analysts for 2.64 billion. “We can see — still — a big demand going forward. If you look at the U.S., the maintenance and the investment in infrastructure is incr


Swedish builder Skanska reported on Friday a smaller rise than expected in fourth-quarter operating profit and proposed a lower dividend than expected. Operating profit at the Nordic region’s biggest builder, and one of the biggest in the United States, was 2.38 billion crowns ($257 million) against a mean forecast in a Reuters poll of analysts for 2.64 billion. “We can see — still — a big demand going forward. If you look at the U.S., the maintenance and the investment in infrastructure is incr
Skanska fourth-quarter operating profit, 2018 dividend lag expectations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, operating, expectations, dividend, 2018, profit, crowns, fourthquarter, lag, proposed, going, forward, billion, skanska, biggest, builder


Skanska fourth-quarter operating profit, 2018 dividend lag expectations

Swedish builder Skanska reported on Friday a smaller rise than expected in fourth-quarter operating profit and proposed a lower dividend than expected.

Operating profit at the Nordic region’s biggest builder, and one of the biggest in the United States, was 2.38 billion crowns ($257 million) against a mean forecast in a Reuters poll of analysts for 2.64 billion. A year earlier, the profit was 738 million.

“We can see — still — a big demand going forward. If you look at the U.S., the maintenance and the investment in infrastructure is incredibly large going forward,” Anders Danielsson, CEO of Skanska, told CNBC’s “Squawk Box Europe” on Friday.

“So, we don’t really see a slowdown within the market that we are active in the U.S.,” he added.

Skanska proposed a dividend of 6.00 crowns per share, down from 8.25 crowns and below the 8.35 crowns seen by analysts.


Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, operating, expectations, dividend, 2018, profit, crowns, fourthquarter, lag, proposed, going, forward, billion, skanska, biggest, builder


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Volvo Cars feels margin pressure from US-China tariff war

But we have to be realistic and acknowledge that margins will remain under continued pressure,” Volvo Chief Executive Hakan Samuelsson said in a statement. Volvo said its operating profit increased by 0.9 percent to 14.2 billion Swedish crowns ($1.5 billion) although its margin fell to 5.6 percent from 6.7 percent. This was despite its 2018 revenue rising by 21 percent to 252.7 billion Swedish crowns. The Swedish-based firm postponed plans for a listing last year, citing the adverse impact of th


But we have to be realistic and acknowledge that margins will remain under continued pressure,” Volvo Chief Executive Hakan Samuelsson said in a statement. Volvo said its operating profit increased by 0.9 percent to 14.2 billion Swedish crowns ($1.5 billion) although its margin fell to 5.6 percent from 6.7 percent. This was despite its 2018 revenue rising by 21 percent to 252.7 billion Swedish crowns. The Swedish-based firm postponed plans for a listing last year, citing the adverse impact of th
Volvo Cars feels margin pressure from US-China tariff war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: reuters with cnbccom, kristian helgesen, bloomberg, getty images
Keywords: news, cnbc, companies, tariff, uschina, feels, samuelsson, profit, billion, swedish, market, growth, cars, margin, volvo, pressure, war


Volvo Cars feels margin pressure from US-China tariff war

Volvo Cars, owned by China’s Geely, reported higher full-year revenue on Thursday, but said its profit margins had slipped and were expected to remain under pressure this year.

Carmakers have faced rising costs and pricing pressure in some markets due to a trade war between Washington and Beijing in 2018 as well as slower demand from Europe and from China, the biggest autos market.

“For 2019, we see another year of volume growth as we continue to benefit from our strong product program and increased capacity. But we have to be realistic and acknowledge that margins will remain under continued pressure,” Volvo Chief Executive Hakan Samuelsson said in a statement.

Suppliers and automakers have issued new warnings and results misses this year, with Daimler this week reporting a fall in fourth-quarter operating profit.

Volvo said its operating profit increased by 0.9 percent to 14.2 billion Swedish crowns ($1.5 billion) although its margin fell to 5.6 percent from 6.7 percent. This was despite its 2018 revenue rising by 21 percent to 252.7 billion Swedish crowns.

Volvo has been on a growth path under Geely’s umbrella, with five straight years of record sales, aided by its steady push into premium automobiles, pitted it against Daimler’s Mercedes-Benz and its fellow German rival BMW.

The Swedish-based firm postponed plans for a listing last year, citing the adverse impact of the tariff war and an industry downturn, while also taking on the costs of retooling its factories in an effort to limit the negative tariff impact.

Speaking to CNBC’s “Squawk Box Europe” on Thursday, Samuelsson said the slowdown in the Chinese market had not blindsighted the company.

“After many years of constant growth in China (there is) finally some reduction – I think that shouldn’t really be a surprise to anybody,” he said.

“In the European market and the U.S. market we don’t see any clear signs of a downturn so far. We really see that this year will be another year of growth because we have the best profit program ever and of course we have the capacity with new factories. Strategically for us it’s very important to use that and then improve our market share.”

However, Samuelsson added that an IPO was not a part of this year’s growth strategy for Volvo Cars.

“We said it’s an option, and it’s up to our owner, but we decided right now the climate in the market (is) not suitable for an IPO, so we put that on ice – it’s not going to happen this year and we have no plans for that,” he told CNBC.

– CNBC’s Chloe Taylor contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: reuters with cnbccom, kristian helgesen, bloomberg, getty images
Keywords: news, cnbc, companies, tariff, uschina, feels, samuelsson, profit, billion, swedish, market, growth, cars, margin, volvo, pressure, war


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

ING’s fourth-quarter profits beat on higher interest income, commissions

ING Groep, the largest Dutch financial group, on Wednesday reported better-than-expected fourth-quarter underlying pretax earnings of 1.69 billion euros ($1.93 billion), reflecting rising interest income, commissions and fees. The results come as ING tries to put a hefty 775 million euros fine it incurred in the third quarter for poor monitoring of money laundering by clients. Analysts polled for Reuters expected pretax earnings to come in at 1.57 billion euros for the three months ended Dec. 31


ING Groep, the largest Dutch financial group, on Wednesday reported better-than-expected fourth-quarter underlying pretax earnings of 1.69 billion euros ($1.93 billion), reflecting rising interest income, commissions and fees. The results come as ING tries to put a hefty 775 million euros fine it incurred in the third quarter for poor monitoring of money laundering by clients. Analysts polled for Reuters expected pretax earnings to come in at 1.57 billion euros for the three months ended Dec. 31
ING’s fourth-quarter profits beat on higher interest income, commissions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: reuters with cnbccom, michel porro, getty images news, getty images
Keywords: news, cnbc, companies, banking, profits, earnings, beat, ing, 156, net, commissions, income, billion, pretax, fourthquarter, euros, higher, come, ings, interest


ING's fourth-quarter profits beat on higher interest income, commissions

ING Groep, the largest Dutch financial group, on Wednesday reported better-than-expected fourth-quarter underlying pretax earnings of 1.69 billion euros ($1.93 billion), reflecting rising interest income, commissions and fees.

The results come as ING tries to put a hefty 775 million euros fine it incurred in the third quarter for poor monitoring of money laundering by clients.

Analysts polled for Reuters expected pretax earnings to come in at 1.57 billion euros for the three months ended Dec. 31, compared with 1.56 billion euros a year ago.

ING said it had won new customers despite the scandal and seen net loan growth of 3.2 billion euros. Among key banking metrics, its net interest margin was 1.56 percent, slightly worse than 1.58 percent a year ago, but its cost/income ratio improved to 57.1 percent from 59.9 percent.

“We see the need for better cost discipline as we expect lower lending in the wholesale banking division (in 2019),” CEO Ralph Hamers said in a statement.


Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: reuters with cnbccom, michel porro, getty images news, getty images
Keywords: news, cnbc, companies, banking, profits, earnings, beat, ing, 156, net, commissions, income, billion, pretax, fourthquarter, euros, higher, come, ings, interest


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post